1. To answer's GGM's question, the government will and would screw any reforms up. I say this from a purely ideological standpoint. I will say the same thing about any attempt for government reform. Endy points it out better than I can. Sometimes speculators win. Sometimes they lose. As my old finance professor asked, "Why does bread stay the same price all year?" What would reducing speculation really do except make things more volatile most of the time?
2. Economists should champion optimism in times of pessimism. So look at all of the evidence for self-correction. I have driven for 1200 miles in the last two weeks. Every time a car passed me, I compared its fuel efficiency to the Blazer. Almost every new car I see gets more than 30 miles per gallon. The buses are more crowded. I have organized my computers to be able to work from home more often. I hitched a seven hour ride with two guys that I moderately despise. "The times they are a changin'." It will be tough, but everything is going to work out eventually.
3. What I am saying is I haven't thought about or studied gas prices very much. This is probably a good thing. Adaptability is the only trait that matters.
4. Last year there was a drought. This year I am low on blood because of mosquitoes. Uncertainty abounds. We adapt.
5. The Wal-Mart oil change tradeoff is why I got into economics in the first place. The only thing I know is that there is no optimal answer. That is why there is a non-Wal-Mart oil change place on every corner. That is why no single entity can ever rule the world. We adapt.
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